06 Oct 2014

Halifax’s latest House Price Survey

Halifax’s latest House Price Survey

Nikki Christie, Independent Mortgage Advisor comments Halifax’s latest House Price Survey.

Nikki Christie, Independent Mortgage Advisor comments on Halifax’s latest House Price Survey.

Halifax House Price Survey

The increase in house prices may have started to ease, according to the Halifax. In their latest survey, they said prices across the UK in the three months to the end of August 2014 rose by 9.7%, which is significantly down from 10.2% in July 2014. Prices in the three months between June and August 2014 were 3% higher than in the previous quarter and where down from 3.5% in the previous month.

Martin Ellis, Halifax's Chief Housing Economist, said there had been an improvement in housing supply, both second-hand homes coming on to the market, and increased numbers of new flats and houses. "These trends, if sustained, should help to improve the balance between supply and demand, by contributing to an easing in the pace of house price growth," he said. The number of new buyers making inquiries also fell in July; the first time that has happened since January 2013.

Restrictions

The average house price is now £186,270 which is the highest level since April 2008, according to the Halifax. From July to August, prices rose by just 0.1%. Monthly figures are notoriously volatile, and do not provide an accurate guide to market trends.Nevertheless that compared with a monthly jump of 1.2% between June and July. 

A number of factors may be combining to limit enthusiasm for home-buying; among them is the likelihood that interest rates will begin rising at the end of this year, or early in 2015. The Bank of England's Financial Policy Committee ('FPC') is also in the process of imposing restrictions on lenders and borrowers will have to show that they could withstand a 3% rise in mortgage rates, within the first five years of their loan. Lenders will also be limited in the number of riskier loans they can provide.

With a number a lenders reducing their two and five-year fixed rate mortgage products, in the past couple of weeks, there are still some excellent deals available for buyers who are concerned about rate rises and would prefer to lock in now.  

To ensure stricter lending criteria is met by potential borrowers, it’s now even more important to get financial advice and find the best product to suit.

Nikki Christie, Idependent Mortgage Advisor

*This article is based on an by the BBC published on 8th September 2014. The article can be found here

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